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The following is included in the FASB Accounting Standards Codification Manual, Section 450-25-2:
1. As this amount is reasonably possible but not probable, it should be disclosed, but not accrued.
2. As this is probable (the threshold for requiring a charge to income), an accrual must be recognized in the current period. As the amount is estimatable and no award is a better estimate, the low end of the range ($600,000) would need to be accrued for the period. If material, specific disclosure should be made.
3. As this is a gain contingency, it should not be accrued as income or disclosed.
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